Reference no: EM132800019
Questions -
Q1. Moon Inc. borrowed $100,000 from the bank by entering into a 9-month note at 4% interest dated March 1, 2019. The fiscal year-end is December 31. Calculate the total interest that will be paid at maturity. Use days in your calculation. Do not use decimals.
Q2. Which of the following is not a voluntary payroll deduction?
a) Unions dues
b) Charitable donations
c) Private health and pension benefits
d) Employment Insurance
Q3. Star Corporation declares a dividend of $150,000 on January 15, 2019. The company has 50,000 common shares outstanding and 10,000 preferred shares with a $2 non-cumulative dividend. The company last paid a dividend on December 31, 2017. How much of the dividend will be paid to each type of shareholder?
Q4. Comet Inc. has retained earnings of $120,000 on January 1, 2020. The fiscal year end is December 31, 2020. Throughout the year, Comet Inc. paid dividends of $32,000 and earned Net income of $123,000. The company also repurchased shares at a total of $15,000. Which of the following is ending retained earnings at December 31, 2020?
a) $226,000
b) $211,000
c) $305,000
d) $241,000
Q5. The current assets of Mars Corporation are $615,000. The current liabilities are $512,500. The current ratio expressed as a ratio is:
a) 120%
b) 0.8:1
c) 80%
d) 1.2:1
Q6. If our beginning inventory is $50,000, purchases of inventory are $300,000, discounts for early payment are $3,000, delivery charges on goods sold are $4,000, and ending inventory is $40,000, what is our cost of goods sold? Assume the company uses a perpetual inventory system.
a) $311,000
b) $301,000
c) $297,000
d) $307,000
Q7. Which of the following is not true of a corporation?
a) It is regulated provincially or federally
b) The acts of the shareholders bind the corporation
c) It may buy own and sell property
d) It may enter into binding legal contracts in its own name
Q8. Sun Corporation had the following normal account balances:
2020 Ending Allowance for Doubtful Accounts: $5,500
2019 Ending Allowance for Doubtful Accounts: $3,500
Accounts written off during 2020: $4,000
Assuming there were no other adjustments in the account, what was the bad debt expense for 2020?